Following the recent rains that have fallen across California, supplies have become tighter and storage levels are dropping. “However, including what is out on the trees, supply is good,” says John Carter of Limoneira. “It’s predominantly coming from District #1 followed by District #3 which is coming to an end quickly and District #2 is beginning.”
Compared to last year at this time, D3 is similar in tree crop. “D1 and D2 had big volume years last year with D1 forecasting to be down compared to last year by 10–15 percent and D2 forecasted to be down by 5 percent,” says Carter. “Of course, this estimate is fluid given the rains and likely increase in sizing.”
Other global regions producing right now include Spain, Turkey, Italy and China.
Steady demand
Meanwhile, demand has been solid though Carter says there have been slowdowns here and there depending on weather occurring across U.S. and Canada. (Including the extreme cold that took place at the end of December.) “We expect to see the usual retail focus during winter as citrus takes more of the merchandising spotlight. Foodservice has been steady and expects demand to move higher as we get into Spring with warmer weather and Lent beginning,” he says.
In turn, pricing has been increasing compared to a few weeks ago as those storage levels started coming down. However, Carter says pricing is similar overall to last year at this time, though challenges on pricing include both the continued higher costs on production along with the strong dollar impacting the exchange rate for export shipments.
Looking ahead though, in the next few weeks, rain is anticipated to subside around January 20th as a high-pressure ridge is predicted to build. “Of course, it could pick up again when we get into February. That’s a little far out to predict right now,” says Carter. “There will be lemons, but it will come down to specific grades and sizes. This is also impacted by the consistently cool to cold temperatures we have been experiencing in California and Arizona.”
Source - https://www.freshplaza.com
